Correlation Between Samyang Foods and Seoul Food
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Seoul Food at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samyang Foods and Seoul Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyang Foods Co and Seoul Food Industrial, you can compare the effects of market volatilities on Samyang Foods and Seoul Food and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Samyang Foods with a short position of Seoul Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Seoul Food.
Diversification Opportunities for Samyang Foods and Seoul Food
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samyang and Seoul is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Seoul Food Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoul Food Industrial and Samyang Foods is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samyang Foods Co are associated (or correlated) with Seoul Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Food Industrial has no effect on the direction of Samyang Foods i.e., Samyang Foods and Seoul Food go up and down completely randomly.
Pair Corralation between Samyang Foods and Seoul Food
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.77 times more return on investment than Seoul Food. However, Samyang Foods is 1.77 times more volatile than Seoul Food Industrial. It trades about 0.31 of its potential returns per unit of risk. Seoul Food Industrial is currently generating about 0.01 per unit of risk. If you would invest 54,200,000 in Samyang Foods Co on September 14, 2024 and sell it today you would earn a total of 13,900,000 from holding Samyang Foods Co or generate 25.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Seoul Food Industrial
Performance |
| Timeline |
| Samyang Foods |
| Seoul Food Industrial |
Samyang Foods and Seoul Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Seoul Food
The main advantage of trading using opposite Samyang Foods and Seoul Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Seoul Food can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Seoul Food will offset losses from the drop in Seoul Food's long position.| Samyang Foods vs. Samsung Electronics Co | Samyang Foods vs. Samsung Electronics Co | Samyang Foods vs. SK Hynix | Samyang Foods vs. POSCO Holdings |
| Seoul Food vs. Samsung Electronics Co | Seoul Food vs. Samsung Electronics Co | Seoul Food vs. SK Hynix | Seoul Food vs. POSCO Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |